Sales of low-priced residences, including tax lien foreclosure properties, have risen in most parts of the U.S. since the start of the housing industry crisis. This has taken a huge percentage out of more expensive homes' market share. However, the market for million-dollar dwellings seemed to be gaining some ground as sales in this category increased last year in several regions, including Massachusetts.
Boston foreclosures and distressed properties in other areas of the state still accounted for a huge percentage of statewide home sales in 2010. However, million-dollar residential properties gained some ground after recording a sales increase of 28% last year and posting a higher total than the 1,728 recorded in 2009. This was despite a decline in total housing and condo unit sales in all categories, with last year's sales posting a 1.6% drop compared with 2009 levels.
Although low-priced bank foreclosures in Massachusetts still maintained high percentage sales, the number of people who purchased houses and condominiums worth at least $1 million helped the multimillion housing segment record its first increase in the state in three years. Local brokers explained that the higher demand for more expensive dwellings in 2010 was partly due to lower listing prices.
They also stated that it was not only tax lien foreclosure properties that benefited from the low interest rates, but also pricier homes. In addition, there has been some pent-up demand for more expensive houses in the past few years, which started to emerge last year particularly among rich people, who feel that the economy is getting better and, therefore, their finances are starting to stabilize.
Foreclosed bank properties for sale have been the favored option in the past few years. Recently though, a lot of buyers have gone back to the market looking for pricier homes as the economy starts to improve. Realtors revealed that majority of luxury home buyers last year were former renters who were waiting for the market to improve.
State data showed that more buyers still prefer tax lien foreclosure properties, but those who are looking for expensive dwellings have started to get into the market. The downtown area of Boston recorded the highest sales figure for million dollar residences, with the area posting a total of 381 last year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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